A state audit found significant breakdowns in financial oversight and transparency in the Town of Sodus, including missing financial reports, incomplete records, and a lack of basic accountability measures.
The report from the New York State Comptroller’s Office concluded that town officials failed to meet key legal requirements meant to ensure public visibility into how taxpayer money is managed.
Among the most serious findings: the town board did not conduct a required annual audit of the supervisor’s financial records for 2024, a core responsibility under state law. At the same time, the town supervisor failed to file Annual Financial Reports (AFRs) for four consecutive years — from 2021 through 2024 — leaving residents without access to up-to-date financial information.
The audit also found that even the most recent completed AFR, for 2020, was filed more than four years late.
Beyond missed filings, the report paints a picture of day-to-day financial mismanagement. The supervisor did not perform monthly bank reconciliations in 2024, and the board was not provided with reliable financial reports, such as budget-to-actual comparisons or accurate cash balances.
Auditors said those failures left town officials unable to properly monitor finances or make informed decisions — and left the public in the dark about the town’s fiscal condition.
The issues were compounded by a server failure in 2024 that wiped out years of accounting data, which officials said contributed to incomplete records. But the comptroller’s office made clear that maintaining accurate and up-to-date records remains the town’s responsibility regardless of technical setbacks.
The audit also flagged payroll problems, finding that seven highway department employees were overpaid a combined $1,781 due to errors in calculating overtime.
In total, the report issued 11 recommendations, including requiring annual audits, restoring accurate financial reporting, completing overdue filings, and improving oversight of payroll and accounting practices.
Town officials agreed with the findings and said they have begun corrective actions, according to their response included in the audit.
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